EUR/USD can’t make up its mind as it whittles away the hours until the stress test results are finally released. On pullbacks now, expect support in the low 1.2860s. Stops, of course, are just below that level.
Yesterday we highlighted that the risks seem tilted to the downside for EUR/USD as the market had priced in optimistic stress test results. In the last 24-hours or so, that has become the conventional wisdom, meaning the risks are probably now tilted higher!
It’s a crazy old world, isn’t it?
My best advise for today: Let the dist settle. If the stress tests are truly a market-moving event, they will move it next week and beyond. Today is very likely to be a poop-storm, to put it politely.
